- May 2014
- December 2013
Ruby Jacob, 12 Sep 2013
Basic savings account with no minimum balance requirements can be opened with any scheduled commercial bank in India. RBI has clarified that foreign banks in India are also liable to provide this facility to interested customers.
Anyone can have Basic Savings Bank Deposit Account
Basic Savings Bank Deposit Account (BSBDA) is actually part of banks' financial inclusion plan to bring basic banking services to the reach of all demographic groups. Banks are expected to open basic savings account for any customer without restrictions of age or income. No minimum account opening amount is to be demanded by banks.
Contrary to a misconception, Basic Savings Bank Deposit Account is not restricted to those from poor and weaker sections of the society. Anybody who wishes can get this account opened with a bank of their choice, even foreign banks like Citibank and Standard Chartered Bank. In fact it was to do away with stigma attached to the term 'no-frills' account that the concept was modified and renamed as Basic Savings Bank Deposit Account in April 2012.
Features of Basic Savings Bank Deposit Account
Such a basic savings account has no minimum account requirements, has passbook facility, cash deposit and withdrawal facility through branch or ATM as well as money transfer though electronic payment and cheque facility. In short, all basic banking services would be provided in Basic Savings Bank Deposit Account without any charges.
It is understood that Basic Savings Bank Deposit Account would offer only basic services free of cost. For availing full-fledged services of the bank, customers can opt for other accounts. For instance, under basic savings account free withdrawals in a month are restricted to four, whether through ATM, standing instruction, branch cash withdrawal or by any other mode.
A customer having Basic Savings Bank Deposit Account in one bank cannot have other savings account in the same bank. However, there is no restriction on having term deposit account and recurring deposit account at the same bank.